{"id":81743,"date":"2025-11-28T12:27:21","date_gmt":"2025-11-28T04:27:21","guid":{"rendered":"https:\/\/www.kgieworld.sg\/research\/?p=81743"},"modified":"2025-11-28T12:27:22","modified_gmt":"2025-11-28T04:27:22","slug":"company-report-sasseur-reit-sassr-sp-crpu-si","status":"publish","type":"post","link":"https:\/\/www.kgieworld.sg\/researchstg\/company-report-sasseur-reit-sassr-sp-crpu-si\/","title":{"rendered":"Company Report: Sasseur REIT (SASSR SP\/CRPU.SI)"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Company Update: <em>28 November 202<\/em>5<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>REIT-vitalisation Continues Amid Macro Conditions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Operational strength.<\/strong> Sasseur REIT delivered a resilient 3Q25 performance, with 10.8% YoY outlet sales growth, occupancy remaining high at 98.5%, and a WALE of 2.0 years. The results were supported by strong tenant retention and longer lease commitments from sports, lifestyle and domestic fashion brands.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">3Q25 Results<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">3Q25 EMA rental income rose 4.9% YoY to RMB166.3mn, driven by a 9.7% increase in the variable component on strong outlet sales. In SGD terms, EMA income rose 2.6% YoY despite currency headwinds. Weighted average cost of debt declined to 4.6%, and management expects it to fall below 4.5% by 4Q25.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Macro Resilience And Structural Tailwinds<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">China\u2019s consumption environment remained soft nationwide, with retail sales growing only 2.9% YoY in October, the weakest in over a year, while CPI fell 0.3% YoY and PPI decline 2.3% YoY, reflecting weak household sentiment from the property downturn and labour softness. Despite this, outlet formats have continued to outperform traditional malls as consumers trade down to value-oriented retail. Medium-term policy direction has also turned more supportive, China\u2019s 2026-2030 plan aims to significantly raise household consumption from the current ~40% of GDP, supported by RMB1.3 trillion in ultra-long treasury bonds (including RMB300bn reserved for consumption-related trade-in schemes) and a new 19-point plan to stimulate services and experiential consumption. This structural pivot supports Sasseur\u2019s value-driven and experiential outlet model.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Valuation & Action<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We maintain our <strong>OUTPERFORM<\/strong> rating with a revised target price of <strong>S$0.87<\/strong>, based on a Dividend Discount Model incorporating a lower 8.2% cost of equity (from 8.7%) and a 1.5% terminal growth rate. While DPU may soften marginally in the near term due to partial management fee payments in units and RMB\/SGD translation headwinds, these effects remain manageable and transitory. Sasseur REIT\u2019s strong operating performance, improving financing visibility, and defensive outlet positioning continue to underpin a resilient return profile. Medium-term upside is further supported by the potential for accretive acquisitions from the sponsor\u2019s ROFR pipeline, which could enhance both NAV and income diversification.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Risks<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">RMB depreciation against SGD, slower-than-expected household spending recovery, and competition arising from online retail and new outlet supply.\u00a0 \u00a0<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 25px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-luminous-vivid-orange-background-color has-background wp-element-button\" href=\"https:\/\/www.kgieworld.sg\/securities\/resources\/ck\/files\/docs\/research\/KGI%20REPORT%20SASSEUR%20REIT_3Q25%20UPDATE%20FINAL.pdf\">Read Full Report<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/t.me\/kgisg\"><img fetchpriority=\"high\" decoding=\"async\" width=\"760\" height=\"208\" src=\"https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2021\/04\/subscribegif.gif\" alt=\"Subscribe Now\" class=\"wp-image-3937\"\/><\/a><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Operational strength. Sasseur REIT delivered a resilient 3Q25 performance, with 10.8% YoY outlet sales growth, occupancy remaining high at 98.5%, and a WALE of 2.0 years. The results were supported by strong tenant retention and longer lease commitments from sports, lifestyle and domestic fashion brands.<\/p>\n","protected":false},"author":17,"featured_media":81744,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-81743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"uagb_featured_image_src":{"full":["https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2025\/11\/Sasseur-REIT-Logo.png?wsr",1200,1200,false],"thumbnail":["https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2025\/11\/Sasseur-REIT-Logo-150x150.png?wsr",150,150,true],"medium":["https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2025\/11\/Sasseur-REIT-Logo-300x300.png?wsr",300,300,true],"medium_large":["https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2025\/11\/Sasseur-REIT-Logo-768x768.png?wsr",768,768,true],"large":["https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2025\/11\/Sasseur-REIT-Logo-1024x1024.png?wsr",800,800,true],"1536x1536":["https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2025\/11\/Sasseur-REIT-Logo.png?wsr",1200,1200,false],"2048x2048":["https:\/\/www.kgieworld.sg\/researchstg\/wp-content\/uploads\/2025\/11\/Sasseur-REIT-Logo.png?wsr",1200,1200,false]},"uagb_author_info":{"display_name":"Enya Tan","author_link":"https:\/\/www.kgieworld.sg\/researchstg\/author\/enya-tankgi-com\/"},"uagb_comment_info":0,"uagb_excerpt":"Operational strength. Sasseur REIT delivered a resilient 3Q25 performance, with 10.8% YoY outlet sales growth, occupancy remaining high at 98.5%, and a WALE of 2.0 years. The results were supported by strong tenant retention and longer lease commitments from sports, lifestyle and domestic fashion brands.","_links":{"self":[{"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/posts\/81743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/comments?post=81743"}],"version-history":[{"count":1,"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/posts\/81743\/revisions"}],"predecessor-version":[{"id":81745,"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/posts\/81743\/revisions\/81745"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/media\/81744"}],"wp:attachment":[{"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/media?parent=81743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/categories?post=81743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/researchstg\/wp-json\/wp\/v2\/tags?post=81743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}